Hi Mermaids,
Don’t wait until August! You won’t find a +ve cash flow deal. You need to make them.
I too am licking my wounds. About to add a new topic describing them.
I have recently moved to SA and would like the opportunity to meet up. Maybe we can generate some ideas to move your deals into =ve cash flow territory.
We may also be able to generate some suggestions for my situation.
I am inspired that you had a go!!
email me and we’ll link up.

Dear All,
Thanks for your responses. I too have been converted to the idea of finding buyers first, rather than vice versa. I am involved in sandwich lease options (so far with only one slice of bread in place and am suffering due to a decline in interest after the intitial contact with the client (end purchaser).
I was introduced to lease options via Rick Otton, and his literature is quite emphatic around this issue… ie always find the property first.

I don’t want a forum argument to start around this issue, but some comments on the pros and cons would be appreciated particularly around ways to secure the buyer into the arrangement… eg what is to stop the buyer pulling out after identifying the house and asking you to enter negotiations midstream. A non refundable application fee didn’t stop one of my clients pulling out. Also… is your negotiation position substantially weakened when entering midstream?
Thanks in advance of your feedback.

I am with jscott… The tenant (always refer to them as a buyer) must win. So too the seller and you in the middle.
I am currently finalising two sandwich (or back to back) lease options simutaneously which have taken far too long and cost far too much. I left my job nearly a year ago to jump in the deep end. I’ve come very close to throwing in the towel a number of times, however, I believe that I have gained some invaluable lessons that I thought would be helpful to you. Writing these lessons down will also help me to crystalise the learnings…

• Don’t buy in a bad area (eg housing trust/commission)
• never get so wrapped up in getting a deal that you forget there will be other buses just around the corner… walk away if it’s not working for you!
• always know how you want to exit from the deal and carefully analyse it from that point of view
• Simultaneously ADVERTISE widely including flyers, local newspaper ads, and multiple yard signs.
• Never give up
• Don’t use the strategy on a junky house.
• Make sure the house meets minimum requirements such as 3 bedrooms and a bathroom. Two bedroom houses are more difficult to sell.
• Don’t panic!
• Find buyers before going unconditional on the purchase or call contract.
• Don’t send/provide all of your application forms to the applicants until they have expressed interest in the house… I’m still trying to understand what’s best here??
• Never show the house to just one applicant. Stack appointments up about 5 mins apart to create a mild sense of urgency
• Be very careful in calculation your upfront (and ongoing fees) and costs in acquiring the property.
• Learn early that you should use resources of other people eg lawn mowing, flyer delivery / printing… Don’t get caught up with this stuff yourselves
• Make time to hang out at this forum regularly.
• Don’t underestimate the impact of buyer calls on your family life.

These lessons have been very expensive ones for me, but having learned them my sense is I am well placed to move forward in my investing career.

Let me know how you go.[cap]
Algenon